Whether your job is salaried, freelancer, or business owner, every working Indian should file their personal tax return. Though it sounds difficult, it is simple and stress-free with some knowledge and preparation. We will walk you through all you require to know about simple words personal tax return filing in this blog.
Define a Personal Tax Return
You send a personal tax return to the Income Tax Department detailing your income, deductions, and paid taxes during the financial year. It enables the government to know your income level and whether your tax payment is accurate. You may also be entitled to a refund if you paid extra tax.
Who Ought to File?
- If your income in India exceeds ₹2.5 lakh (for those below 60 years), you have to file a personal tax return.
- You wish a refund for extra TDS taken out.
- Your assets or income come from abroad.
- You got business, capital gains, or house rent income.
- You want to seek for a loan or a visa.
Filing a return helps you to build a good financial record and serves as evidence of income even if your income is below the limit.
Guidelines for Organising Documents for Your Personal Tax Return
- Form 16, taken from your company
- Financial records
- Particulars of other income (capital gains, interest, rent)
- Investment confirmations (under 80C, 80D, etc.)
- Details of PAN cards and Aadhaar
Select the Correct ITR Form
Your type of income will determine the form. Most salaried people use ITR-1. Other forms such as ITR-3 or ITR-2 may be relevant if you have capital gains or business income.
Visit the E-Filing Portal
Visit https://www.incometax.gov.in and log in with your PAN and password.
Enter Your Income Information
Enter your salary, additional income, deductions, and tax paid. Perhaps some of the portal’s pre-filled details already match.
Check and Send
Review all the material carefully. Send in your personal tax return and e-verify it with net banking, Aadhaar OTP, or another choice.
Save the Acknowledgement
Once turned in, download and save the ITR-V receipt for your records.
Advantages of Organising Your Personal Tax Return
- Get refunds for taxes: Get refunded claim money should additional taxes have been deducted.
- Useful while seeking credit cards, visas, or loans as financial proof.
- Steer clear of fines by late or missed filings; they range from ₹1,000 to ₹5,000.
- Maintaining peace of mind means keeping on the correct side of the law.
Typical Errors to Prevent
- Using the incorrect ITR form
- Missing side employment or interest income
- Entering incorrect bank information
- Ignoring to electronically check the return
- Filming till the last day to
In Conclusion
Not only is timely filing of your personal tax return a legal obligation, but it also improves your financial situation. Online filing and basic forms have made the process simpler than it has ever been. Thus, compile your records, apply the procedures, and confidently file your return. Years from now, this habit will help you constantly.
